The Internet of Service
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1 The Internet of Service CEC Dresden SYSTEMATIC THOUGHT LEADERSHIP FOR INNOVATIVE BUSINESS Dr. Jorge Cardoso, SAP Research
2 Agenda Internet of Services 1. SAP CEC Dresden 2. The Rise of Services 3. Internet of Services 4. Service Engineering 5. Theseus/Texo SAP 2007 / Page 2
3 SAP Research Global Network Darmstadt Dresden Palo Alto Montréal Belfast Walldorf Sophia Antipolis Karlsruhe St.Gallen Zurich Shanghai Pretoria Brisbane SAP Labs-based Research Centers Campus-based Engineering Centers SAP 2007 / Standard Page 3 Presentation / Page 3
4 SAP Dresden Research Fields (Application Research) Future Manufacturing Unified Product Content Mgmt Research Programs (Technology Research) Data Management & Analytics Software Engineering & Architecture (Service Engineering) Semantic Technologies & Applications Smart Items SAP 2007 / Page 4
5 Research Field Future Manufacturing Motivation SAP in Manufacturing World market leader with about 45% market share SAP Manufacturing Solution (Planning, Execution, Quality & Maintenance Management) SAP Manufacturing Integration and Intelligence Trends (IDC and AMR Research) PLM market will grow at a 9.7% through 2011 Collaborative Product Design 19% PLM license share and 17% growth rate in 2006 Collaborative decision environments The next big IT investment area in PLM Collaborative decision-making among the top 10 predictions for Product Lifecycle Management in 2008 Ontologies and semantics: The next hot topic for decision environments Customer Needs Management (CNM) Fastest growing segment of PLM: 14% five-year SAP 2007 / Page 5
6 Data Management & Analytics Holistic data management Data integration Unstructured information management Data analysis Distributed file systems (transfer project with NetWeaver) Active Information Store (with Palo Alto) Corporate data quality (with St. Gallen) Semi-automatic data migration Semi-automatic message mapping Ontology matching Matching framework in NetWeaver Text mining (with Business Objects) Entity centric information management Data fusion Use Case for SAP Marketplace with SAP KPS High-performance event correlation Visual analytics (with Business Objects) BI over unstructured data (Article in DB Spektrum) Integ SCM FIN Person Biz. Time Planning Supply Finan. Mgmt Person. Chain Accoun Admin Control -ting Profitab Com- ility pen- Expens Analys. sation Logistics Pay- e & Execution ment Reimb. Due Project Item Mgmt Mgmt PRO HCM CRM Purcha sing Presales, Requisi Sales & -tioning Services Catalog Author- Catalog ing Suppl. Publish Invoicing Cust. ing RFQ Invoic- Processining SRM SAP 2007 / Page 6
7 Software Engineering & Architecture Model-Driven Business Application Engineering Model-driven development Aspect-oriented modeling Model transformations and views Software product lines Service Engineering Planning, designing, developing and evolving service based applications Enabler for Service Ecosystems User Interfaces for services Adaptive Applications Multi-modal user interface development Context-aware applications SAP 2007 / Page 7
8 Agenda Internet of Services 1. SAP CEC Dresden 2. The Rise of Services 3. Internet of Services 4. Service Engineering 5. Theseus/Texo SAP 2007 / Page 8
9 From Enterprise SOA to The Internet of Services TASK-ORIENTED SERVICES Enterprise SOA Internal value networks focus on key activities, processes and relationships COMPOSED ENTERPRISE SERVICES Enterprise SOA 2.0 External value networks include customers, suppliers, partners, and consumers Cancel Order Business Web SAP 2007 / Page 9
10 Trends in Globalization of Services Business Service outsourcing $1 billion per year per F1000 company on third party services* Globalization of supply/demand biggest trend in service industries SaaS growth outpacing expectations*: $6.3b in 06 $19.3b in 11 *[Gartner, IDC, Aberdeen] SAP 2007 / Page 10 AB
11 Trends in Globalization of Services (cont d) Commercial Ventures DirectGov.uk (UKOnline) USA.gov (FirstGov) Singapore TradeExchange Research endeavours Theseus - German Lighthouse Project (German Govt funded, 250m) Smart Services Research Centre (Australian Govt funded, 60m) Internet of Services research field SAP Research EU FP7 service research projects (EU funded, SAP budget 35.5m) Service Research and Innovation Initiative (founded by IBM) SAP 2007 / Page 11 AB
12 Trend: Tertiarisation Growth through services Building Sector 6% Commerce, Hotel and Restaurant Industry and Transport Sector 17,9% Gross Value Added in Germany Finance, Leasing and Business Service Provider 23,3% Commerce, Hotel and Restaurant Industry and Transport Sector 18,0% 62,0% Building Sector 69,4% 3,9% Finance, Leasing and Business Service Provider 29,1% Industry (without Building Sector) 30,6% Agriculture and Forestry, Fishery 1,4% Public and Private Service Provider 20,8% Industry (without Building Sector) 25,8% Agriculture and Forestry, Fishery 0,9% Public and Private Service Provider 22,3% Source: Statistisches Bundesamt, 2006 SAP 2007 / Page 12
13 Germany Trend: Growing international trade German backlog for services USA Großbritannien Spanien Türkei Frankreich Griencheland Indien Portugal Österreich Italien Polen Südafrika Mexiko Luxemburg Neuseeland Ungarn Slowakei Österreich Island Sloweniaen Tschechien Schweiz Finnland Dänemark Bulgarien Schweden Kenia Niederlande Brasiilien Irland Kanada Norwegen Japan ChinaGUS World trade balance 2005 (Exports minus imports in bn US-Dollar) Services trade balance (Exports minus imports in bn US-Dollar) SAP 2007 / Page / Page USA Großbritannien Germany JapanGUSIrland Kanada Kores China Brasilien Mexiko Südafrika Italien Island Ungarn Slowakei Neuseeland Tschechien Österreich Polen 0 Norwegen Finnland Belgien Österreich Niederlande Dänemark Portugal Schweden Frankreich Türkei Luxemburg Griencheland Schweiz Spanien Eurozone Quelle: OECD Factbook 2007
14 Trend: Tertiarisation Employment through services Employees in Germany 30 m 25 m 20 m 59,5% (23,0 m) +4,9 m Services 71,9% (27,9 m) 15 m 10 m 5 m 29,3% (11,3 m) 7,3% 3,9% -3,4 m Industry without Building Sector Building Sector Agriculture and Forestry, Fishery 20,3% (7,9 m) 5,5% 2,2% 1991 (Total: 38,6 m) (Total: 38,8 m) SAP 2007 / Page 14
15 Business Network Transformation Towards Lean and Agile Business Processes of the Future! Business/ Consumer Web B2B Chains Collaborative Networks Internal Process Pipelines 1990s 2000s SAP 2007 / / Page AB
16 Business Network Transformation Towards Flexible and Lean Business Processes of the Future! HARD-WIRED VALUE CHAIN BUSINESS WEB The End-Customer moves to the Center of the Network! SAP 2007 / Page s 2000s 2010s AB
17 Convergence Physical products and services From product to solutions Drilling machine Drilling holes Mobile Navigation Software- CD Software as a Service SAP 2007 / Page 17 SAP 2007 / Page 17
18 Service Aspects Exporting Goods in Foreign Trade Foreign trade processing is a complex service For SMEs, foreign trade processing is NOT a core competence A reliable value-added service provider coordinates the process on behalf of the seller Order Order Shipment Shipment Seller Payment Buyer Seller Payment Buyer Foreign Trade: value-added service Logistics Provider Customs Insurance Logistics Provider Customs Insurance Ocean Carrier Bank Carrier AKA Hermes Abwicklung des Exports durch den Verkäufer Ocean Carrier Carrier Bank AKA Hermes Abwicklung des Exports durch einen Mehrwertdienstleister SAP 2007 / Page 18
19 Agenda Internet of Services 1. SAP CEC Dresden 2. The Rise of Services 3. Internet of Services 4. Service Engineering 5. Theseus/Texo SAP 2007 / Page 19
20 A New Phenomenon Emerges Internet of Services Vision Services in a connected world Government Census data Map data Compute A worldwide, trusted Service Ecosystem of Service Providers, Consumers and Brokers buying, selling, repurposing and composing services for different needs Open Plattform - resulting in - Consumers & Citizens Market Research Industry A new way of organizing the interaction between partner ecosystem & customer base SAP 2007 / Page 20
21 Definition Business Webs are collaborative social networks among enterprises, public organizations and individuals in order to achieve a common set of goals enabled through the Internet of Services. characterized by: utilize Internet of Services via Enterprise SOA. SAP Research 2006 deliver value-added services composed of individual services provided by the members of the Business Web. flexible and dynamic business model implementation and transformation. Business Web flexible membership of business partners based on mediation and brokering of their provided services forming a service ecosystem. SAP 2007 / Page 21
22 The Big Picture: Vision of the Internet of Services GOVERNMENT & INFRASTRUCTURE egovernment, eenergy, ehealth, Public Security BUSINESS & SCIENCE Cluster/SME, new Service and Business Models CITIZEN/CONSUMER/ EMPLOYEE Digital Lifestyle, New Media, Communities, Collaboration Open Platform for Networks Internet of Services Semantic Technologies Interoperability Web 2.0 MULTIMEDIA CONTENT INTERNET of THINGS SERVICE-ORIENTED SOFTWARE APPLICATIONS SAP 2007 / Page 22 RR
23 Overview High-level Building Blocks Business Web Business Web Business Web Business Web Internet of Services Business Services Service Discovery Information Integration Innovation Business Models application (de)composition rich service descriptions information mash-up network effects business collaboration Service Architectures Semantic Technologies Web2.0 Attractiveness Business Value Technical Aspects Business Aspects SAP 2007 / Page / Page 23 23
24 Value-added Services: Evaluation of a Retail Location Technical Process Map data External Service Providers SAP SAP // Page Page Theseus / Texo service providers Compose Business Process Market Research Multiple Information System Business Model Census data Web Services eservices Evaluation of a Retail Location Value-added Service Provider & enrich existing services into a value added service Requirement: Infrastructure to compose, deliver and bill services Service Delivery Platform
25 Agenda Internet of Services 1. SAP CEC Dresden 2. The Rise of Services 3. Internet of Services 4. Service Engineering 5. Theseus/Texo SAP 2007 / Page 25
26 Services and Models Mental model SAP 2007 / Page 26 A Service Model A model is an abstraction A model only focus on certain aspects A model is created to describe a phenomena
27 ISE Methodology ISE Methodology Body of Methods Definition Requirements Design Implementation Preparation Market Market Lunch Method = Techniqueand Process A specific construct supporting a method Scope Model {contextual} Service TXT, VISIO, PPT description of services Workflow TXT, VISIO, PPT description of the workflow Data TXT, VISIO, PPT description of data assets People TXT, VISIO, PPT description of organizational units Rules TXT, VISIO, PPT Goals and strategy Confidential SAP 2007 / Page 27 A Method produces models Business Model {conceptual} Logical Model {system} Technical Model {physical} Runtime {operational} Formal definition of functional/ non-functional requirements (semantic) Interface, message, format, data, etc SAWSDL, WSDL, SOAP, WS-Policy, XML Schema, XML, WSMO, etc WP7/WP10 Formal definition of functional/ non-functional, BPMN BPMN+ WS-Policy, WS-CDL, WS-CI, BPEL WP7/WP10 Interrelations between semantic data assets Semantic data model OWL, RDFS, XML Schema, XML WP7/WP10 Organizational chart Interaction between people and service/processes GUI between people and services/processes. Security model WS-policy WP7/WP10 Underlying concepts (paradigm) E.g. service-oriented development Business plan (rules and constraints) Business rule model RuleML, SWRL WP7/WP10 A sequence of actions leading to some result Examples: spiral model waterfall model throwaway prototyping model reusable software model evolutionary prototyping model
28 Model-driven Service Engineering Business Perspective of ISE The strategic view on Business Services Conceptual Perspective of ISE Logical Perspective of ISE Technical Perspective of ISE Model-based Integration ISE Software Workbench SAP 2007 / Page 28
29 ISE Workbench Model-driven Service Engineering News alpha d6.3.1 available internally Confidential SAP 2007 / Page 29
30 ISE Workbench Model-driven Service Engineering SAP 2007 / Page 30
31 ISE Workbench Mindmaps Executive Manager Business Analyst Process Architect SAP 2007 / Page 31
32 ISE Workbench BPMN Executive Manager Business Analyst Process Architect SAP 2007 / Page 32
33 ISE Workbench BPEL Executive Manager Business Analyst Process Architect SAP 2007 / Page 33
34 Where does ISE starts and stops? ISE Methodology Innovation Innovation Definition Requirements Design Implementation Preparation Ready Ready Market for for Market Market Lunch An initial idea Start ISE End ISE Input Comments Discussion An idea to explore Service discovery and consumption Confidential SAP 2007 / Page 34
35 Agenda Internet of Services 1. SAP CEC Dresden 2. The Rise of Services 3. Internet of Services 4. Service Engineering 5. Theseus/Texo SAP 2007 / Page 35
36 Internet of Services Project THESEUS/TEXO Market Place Value-Added Services Service aggregation and brokering Internet-trading over a centralized platform Classical Services Service execution in real world for humans and things New Automated Services Digital form; execution in virtual world Optimised time-to-market" Customized solutions High security requirements Service execution bound to presence of a customer Enterprise Services Media Services Medical Services SAP / Page 36 AB
37 THESEUS National Research Program Structure and Partners TEXO: The Future Business Value Network Scalable Semantic Image Search in Medicine The semantic enterprise Organizing your digital life The world is your audience Management of cultural assets in digital form Theseus Use Cases Business Web Market Leader for Business Applications Medical Web Market Leader for Applications in the Health domain Consumer & Business Web Market Leader for Content and Services Consumer Web Content owners and providers Vision Industry partners Ecosystem SAP 2007 / Page / Page Source: SAP Global Communications input to Innovationsrat meeting
38 Partners Industriepartner SAP (Mitarbeit in allen WPs, Management) Siemens (Plattform-Dienste, Community Mining) Empolis (Dienst-Suche und Hosting-Plattform) KMUs Ontoprise (Werkzeuge für semantische Annotation) Intelligent Views (Management der Zugangsrechte) Forschungsinstitute FZI (Semantik für das Business Web, Business Modelle) DFKI (Schnittstelle für mobile Nutzer) FhG IGD (Benutzerschnittstelle, Mash-up) FhG IAO (Dienst-Innovation) Hochschulen TU Darmstadt (Dienst-Orchestrierung, Governance) TU Dresden (Dienst-Komposition, Datenströme) TU München (Dienst-Innovation, Performance-Analyse) TU Karlsruhe (Rechtsfragen) SAP 2007 / Page 38
39 live demo of texo scenario SAP 2007 / Page 39 39
40 Illustrating the Internet of Services Vision The Eco Calculator SAP 2007 / Page 40
41 Conclusions Growth of services worldwide Service trade balance Convergence Physical products and services New technical infrastructures to deliver services Service Engineering Marketplaces for services Theseus and Texo Challenges for Service infrastructures Semantic technologies Innovation Business models SAP 2007 / Page 41
42 Thank you! SAP 2007 / Page 42
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